[ad_1]
©Reuters. Mexican peso closes at 20.45 per dollar after weekly depreciation of 0.64%
Mexico City, Jan 21 (EFE).- The closed this Friday with a weekly depreciation of 0.64% when trading at 20.45 units per US dollar, thus ending with seven weeks of profits.
The data implies a weekly depreciation of 13 Mexican cents compared to the exchange rate of 20.32 units of the previous Friday reported by the Bank of Mexico (Banxico).
“It is worth mentioning that this is the first week that the peso has lost ground against the dollar since November, after seven consecutive weeks of appreciation,” Gabriela Siller, director of economic analysis at Banco Base, told Efe.
During the week, the exchange rate hit a minimum of 20.28 Mexican pesos per dollar and a maximum of 20.57 units per greenback.
“The strengthening of the dollar was due to speculation that the Federal Reserve (Fed) could raise its interest rate four or more times during the year and the expectation that it will begin to reduce the balance sheet probably in mid-2022 added the analyst.
Siller recalled that next week will be relevant because the Fed’s monetary policy announcement and fourth-quarter economic growth in the United States will take place.
In addition, in Mexico the inflation for the first fortnight of January and the global indicator of economic activity (IGAE) for November will be known.
The Mexican peso, which was around 18.5 units per dollar before the pandemic, suffered its worst moment in March 2020 when it exceeded 25 units.
The Mexican currency closed 2021 with an annual depreciation of 3.01%, trading at 20.51 units per dollar on the last day of the year.
The covid-19 pandemic crisis caused a historic 8.2% contraction in Mexico’s gross domestic product (GDP) in 2020, the worst crash since the Great Depression of 1932.
The Mexican economy would have rebounded 5.8% in 2021, as estimated last week by the Economic Commission for Latin America and the Caribbean (ECLAC).
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
[ad_2]